Recently, as the most aggressive operator of NB-IoT commercialization in the world, China Telecom is pursuing that the price of NB-IoT modules is equivalent to the GSM level, so as to reduce the cost of NB-IoT modules to about US$3 within this year.

At present, the NB-IoT Module has just dropped below 60 yuan, which is still a considerable distance from the industry’s expected 5 US dollars.

It is reported that China Telecom is planning to open the largest bid in the NB-IoT universe, and the scale of the module bidding will far exceed the industry’s expectations.

Previously, in the article “How China Unicom Creates Differentiated Advantages in M-IoT Competition”, comobs analyzed that China Mobile is investing nearly 40 billion in NB-IoT/eMTC network construction, and most of the funds must be invested in NB-IoT networks. Upgrade/New. It is inevitable that the scale of China Mobile’s NB-IoT base stations will exceed China Telecom. It is expected that the overall scale of China Mobile’s NB-IoT base stations will be close to about 600,000.

Once China Mobile’s NB-IoT network is deployed on a large scale in Q1 2018, it will effectively reduce the first-mover advantage of China Telecom’s NB-IoT commercialization for half a year.

Therefore, China Telecom’s large-scale bidding for NB-IoT modules will fully widen the overall gap with China Mobile in terms of network, terminal and business services, and maintain a sustainable competitive advantage. Recently, China Telecom’s substantial measures to develop eMTC will also achieve its step-by-step lead in the commercial use of M-IoT at all levels.

The goal of China Telecom’s NB-IoT commercialization is not only to achieve the lead in the commercial progress of the NB-IoT network, but also to ensure that the NB-IoT network has the deepest and widest coverage and the best perception. At present, China Telecom’s NB-IoT has maintained a 100% success rate in reporting data for meter reading services in a certain location under the harsh environment.

For the development of NB-IoT, China Telecom has always spared no effort in promoting it.

In May of this year, China Telecom completed the nationwide NB-IoT network upgrade. On June 20, it released the country’s first billing package based on the number of connections, and on July 15, it completed the NB-IoT service test in 31 provinces.

Starting from July, China Telecom NB-IoT will be open for testing, and will conduct D library special testing, special long list recommendation management, and implement a special subsidy of 20 yuan per module. (comobs note: D library is China Telecom Internet of Things product library)

Not long ago, the Telecommunications Terminal Industry Association (TAF) formulated a unified NB-IoT module standard, involving unified packaging requirements, specifications and dimensions, unified interface and pin definitions, and promoted the large-scale development of the industry through generalization and lowering the R&D threshold.

It can be seen that China Telecom promotes NB-IoT modules to focus on building an 800M NB-IoT industrial ecology.

If the subsidy for NB-IoT modules is 20 yuan per block, it is expected that the scale of this bidding subsidy may be more than 10 million yuan, which will also directly promote the transformation and upgrading of traditional industries, and realize the refined operation of various vertical industries to help small and medium-sized enterprises. Enterprise innovation business development.

However, the author always believes that in the early stage of NB-IoT commercial use, the subsidy of 20 yuan/block for NB-IoT modules cannot effectively promote the substantial cost reduction in the short term, and more support should be given.

In Q3 2017, China Unicom has the ability to quickly access NB-IoT networks in more than 300 cities across the country. Recently, it has guided module manufacturers to build a 900M/1800M NB-IoT ecological chain, which also indirectly boosted China Mobile’s NB-IoT. development of.

Therefore, it is not ruled out that China Telecom will take extreme measures to increase subsidies for NB-IoT modules.

On the whole, China Telecom’s NB-IoT module bidding will effectively promote the mass production of many NB-IoT chip manufacturers in Q4 2017, shorten the process of commercial popularization of NB-IoT terminals, and radiate overseas markets using 800M. NB-IoT network deployment and commercial use.

In addition, China Telecom’s large-scale commercial use of NB-IoT will also effectively promote the domestic eMTC commercial schedule.